‘Economy needs red tape culture shift’

A shift in culture is needed in Whitehall to stop red tape hampering Britain’s economy, business leaders have told the Government. The CBI says an “ingrained culture” means the impact red tape has on business is not considered properly, costing firms tens of millions of pounds. Policies created by Whitehall and Europe last year alone would cost UK businesses an extra £177 million, it claimed. CBI chief policy director Katja Hall said although regulation protects consumers and boosts competition it could also hold back economic growth, adding that small and medium-sized businesses have reported they are “drowning” in new regulations that have been imposed on top of outdated ones that have not been repealed. She said although the Chancellor’s Autumn Statement included “welcome proposals” to make regulators more accountable and accessible, the Government needed to now “back up its words with action”. The chief policy director said the CBI wants the regulation minister to personally sign off every piece of regulation, adding: “We want a culture shift in Whitehall, with greater transparency and accountability in how regulation is created and more detailed analysis of what it will mean for businesses.”

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